Steve Ballmer's Biggest Mistake: Obsessing Over Google

Steve Ballmer's biggest mistake during his tenure as CEO of
Microsoft has been to obsess over the success of Google, while
missing the rise of Apple.

In 2008, when the iPhone was just a year old, and the iPad didn't
exist, our own Henry Blodget
pointed out that Microsoft was wasting time and effort trying
to win Internet media. Since then Microsoft has burned billions
on its search engine, Bing, and related online services.

If Ballmer hadn't been so determined to beat Google he would have
seen Apple's rise coming. He would have latched onto the
importance of mobile computing. He would have made Windows Phones
better. He would have figured out how to make tablets work.

The problem is that Microsoft saw Google's growing profits. It
didn't see the profits Apple was soon to have.

So, the iPhone became a smash hit. It led to the iPad, which is a
smash hit. And the iPad now represents a true threat to Microsoft
and its Windows business.

This is why Microsoft just announced that
it is going to build and sell its own tablet. This would have
been unthinkable just a few years ago. But Apple's success
coupled with the decline of the traditional PC makers has forced
Microsoft to scramble to catch up to Apple.

If Ballmer hadn't been so consumed by the search team in Mountain
View, he might not be scrambling.